I have moved both parents in with me. We are now clearing out their old home that they lived in for over 60 years. Before selling the home, they want to complete repairs and updates (est. $60k). Home in the area are in extreme short supply. Numbers for the neighborhood are as follows:
New or almost new = $121 SF
My parent's home = $75 SF to $84 SF.
Opportunity = The neighborhood is starting to transition from old 1300 - 1700 SF homes to rebuild/remodel 3000 - 4000 SF homes.
My parents are on a limited monthly budget and will need a loan to fix up their home. As a matter of pride, they do not want to sell their home in its current state. They would like to use the proceeds from the sale of the house to kickoff efforts in real estate investing. They have no debt and the home is paid for. What types of loans would be best for this situation?
We have concerns that since this is now no longer their primary resident that they may have difficulty qualifying for a conventional refinance. We would appreciate any advice of what loans may be available for them.
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Thanks for the advise. I think you have a very good point. There is so much emotional baggage with the years spent at the house that it seems hard to navigate and determine what the best solutions might be. There are a few big investors in the area. One of them has about 46 homes. Once or twice a year he either knocks down the house or makes such large modifications that you can no longer determine the original foot print. It is exciting to see the neighborhood improving and being reclaimed. Ensuring that the house is sold to be truly improved would make the situation more bearable.
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